eFXdata reports that analysts at CIBC Research offered their views on today's U.S. retail sales report for July.

"US retail sales retreated in July from well above trend levels, as spending likely shifted towards services during the month. Total retail sales fell by 1.1%, below the consensus expectation for a 0.3% drop. The fall reflected a drop in auto sales, an area that has been challenged by supply chain bottlenecks, as well as large drops in online sales, clothing, and sporting goods. That left the control group of sales (ex. autos, restaurants, gasoline, and building materials), which feeds more directly into goods consumption in GDP, down by 1.0% on the month (vs. -0.2% expected by the consensus)."

"With sales in the control group still 18% above pre-pandemic levels, a further easing off in goods spending ahead is likely as demand shifts to services. However, the spread of the Delta variant poses a downside risk."